'(1) After section 257AA(2) of the Taxes Act 1988 (which specifies the amount by reference to which the children's tax credit is calculated) insert

"(2AA) for a year of assessment during the whole or part of which is qualifying child under five years of age (or more than one) is resident with the claimant, subsection (2) above has effect as if the amount specified there were increased by £200."

(2) After subsection (3) of that section (reduction of amount where claimant has income within the higher rate band) insert:

"(3AA) Where subsection (2AA) above applies, the reference in subsection (3) above to the amount specified in subsection (2) above is to the higher amount applicable by virtue of subsection (2AA) above.".

(3) After subsection (4) of that section (meaning of "qualifying child") insert:

"(4AA) In this section 'qualifying child under five years of age', in relation to a year of assessment, means a qualifying child less than five years of age at the beginning of that tax year.".

(4) In section 257C(1) and (3) of the Taxes Act 1988 (indexaton) for "257AA(2)" substitute "257AA(2) and (2A) and (2AA)".

(5) Schedule 13B to the Taxes Act 1988 (children's tax credit: Provisions applicable where child lives with more than one adult in a year of assessment) is amended in accordance with Schedule 11A to this Act.

(6) Subsections (1) to (3) and (5) above have effect for the year 2003-04 and subsequent years of assessment.

(7) Subsection (4) above has effect for the purposes of the application of section 257AA of the Taxes Act 1988 for the year 2004-05 and subsequent years of assessment.'.

'. In section 271(1) of the Taxation of Chargeable Gains Act 1992 (concerning exemption from CGT) after subsection (j) insert

"(k) any gain accruing to a UK resident company, or to a non-resident company chargeable to UK corporation tax under section 10 of this Act, in respect of the disposal of a substantial shareholding in a trading company or a member of a trading group. For the purposes of this subsection a substantial shareholding is a shareholding of 20% or more held for a period of a year or more.".'.

'.In section 155 of the Taxation of Chargeable Gains Act 1992 (concerning classes of assets for roll-over relief) Class 9, after Head B, insert new subsection.

"CLASS 9

Substantial shareholdings in trading companies or members of a trading group. For the purposes of this section, a substantial shareholding is a shareholding of 20 per cent. or more held for a period of a year or more.".'.

(1) The Treasury may by order made by statutory instrument introduce a scheme of rebates to those persons charged with the aggregates levy and who have employed environmental protection measures in the process of commercial exploitation of aggregate;

(2) Environmental protection measures in this part are those measures which the Secretary of State shall by order determine to be in the interests of protecting or enhancing the environment;

(3) No rebate under this scheme shall be made unless the environmental protection measures:

(a) relate directly to the process of commercial exploitation of aggregate; and

(b) shall have been verified and certified by an external body prescribed for that purpose by the Secretary of State;

(4) A statutory instrument containing an order under this section shall not be made without prior consultation with those persons appearing to the Secretary of State to be representative of those having an interest in:

(i) the commercial exploitation of aggregate;

(ii) the protection of the natural environment;

(iii) the local communities affected.

(5) A statutory instrument containing an order under this section shall be laid before Parliament and approved by resolution of the House of Commons.'.

NEW SCHEDULE

'Children's Tax Credit: Children under five years of age: supplementary

Introduction

1. Schedule 13B to the Taxes Act 1988 (children's tax credit: provisions applicable where child lives with more than one adult in a year of assessment) is amended as follows.

Child living with married or unmarried couple

2. After paragraph 3(2) (provisions applicable where neither partner has income above the basic rate limit entitlement where both partners claim in respect of a relevant child) insert

"(2AA) If a relevant child is a qualifying child under five years of age the reference in sub-paragraph (2)(b) above to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section.".

Child living with more than one adult: other cases

3.(1) Paragraph 6 (provisions applicable in case of child living with more than one adult) is amended as follows.

(2) After sub-paragraph (4) (apportionment of entitlement) insert

"(4AA) If the child is a qualifying child under five years of age the reference in sub-paragraph (4) above to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section".

(3) After sub-paragraph (7) (claim by person with more than one allotted proportion) insert

"(7A) Where sub-paragraph (7) above applies in relation to a person, and any child in respect of which a proportion has been, or could have been, allotted to that person is a qualifying child under five years of age the reference in that sub-paragraph to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section".

Combined cases

4. In paragraph 7 (provisions applicable where child lives with more than one couple or with one or more couples and one or more other adults), after sub-paragraph (2) insert

"(3) Where paragraph 6(4A) or (7A) above applies, the reference in sub-paragraph (2) above to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section.".'.